According to CoinGecko, Tether has gained a majority share in the stablecoin market, surpassing 51% for the first time since May 2022. As of February 13, the total market capitalization of stablecoins was $137.2 billion, with Tether accounting for $68.4 billion of that amount.
The second-largest stablecoin by market share is USD Coin (USDC), with 30.64%, while Binance USD (BUSD) holds the third position with a market share of 12.09%. BUSD has recently been in the spotlight after the New York State Department of Financial Services demanded that Paxos Trust stop issuing new Binance USD.
In early February, Tether released its reserves report, which showed $700 million in net income for the latest quarter. According to Tether representatives, the entire net profit was added to the total USDT reserves, which currently stand at $67.04 billion. This move has helped to solidify Tether’s position as the leading stablecoin in the market.
However, the rise in popularity of stablecoins, including Tether, has raised concerns about the potential risks it poses to the financial system.
The Federal Reserve Bank of New York recently published a study titled “The Implications of Digital Assets for Financial Stability,” which highlights the potential threats of stablecoins to the financial system. Despite these concerns, the demand for stablecoins continues to grow, with Tether leading the way as the dominant player in the market.